The asset management industry has experienced its share of shocks over the past 18 months, from surging inflation and interest rates to geopolitical tensions. Senior partner Ju-Hon Kwek and colleagues find that global assets under management declined by 10 percent in 2022, while net flows slowed to near zero in every region except Asia–Pacific. Total global net flows registered 1.1 percent, in contrast to the norm of 3 to 4 percent during the past decade. But new stresses can lead to new opportunities. Asset managers can consider a three-part agenda going forward: create new strategic positioning for investment and product platforms; reengineer operating models to build greater flexibility and agility; and upgrade firms’ execution capabilities, focusing on distribution and strategic partnerships.
Image description:
A bar graph displays the annual breakdown of global third-party assets under management, in trillions of dollars, from 2013 to 2021. The data show a generally increasing trend from 2013, at $61 trillion, to $121 trillion in 2021, but there was a sudden drop in 2022, to $109.0 trillion, a decline of $13.5 trillion from 2021.
Source: McKinsey Performance Lens Global Growth Cube.
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To read the report, see “Everything everywhere all at once: North American asset management 2023,” November 28, 2023.
As 2023 wraps up, don’t miss our feature, “2023: The year in charts,” highlighting data visualizations that help tell the story of the past year—and what leaders might puzzle through in years to come. Chart of the Day will go on a brief hiatus starting December 22, 2023 and will return January 8, 2024. In the meantime, check out “Only McKinsey: Highlights from our 2023 ‘Insights to Impact’ publishing journey” to dive into the year’s biggest themes.